Professional Documents
Culture Documents
Februati Trimurni
Organization and Management, University of Sumatera Utara, Jl. Almamater Kampus USU,
Medan 20155, Indonesia
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Email: feb_tambunan@yahoo.com
1. Introduction
At present, many countries in the world practice decentralized systems, including Indonesia. The
decentralization system that prevailed in Indonesia began in the "reformation" era, particularly since
the issuance of Law Number No. 22/1999 concerning on Regional Government. This law has been
effective since 2001.
The implementation of decentralization in Indonesia is quite interesting to study because the
country has implemented an absolute centralization system for about thirty two years. According to
the World Bank the implementation of the regional government law has made Indonesia to be one of
the countries that practice "big bang decentralization" [1]. Although this law has been finally revised
twice (Law No. 32/2004 and the latest revision becomes Law No. 23/2014) so that the authority
submitted or distributed to the regions is not as big as the authority in initial law or Law No.22/1999.
The main discussion of this research is about decentralization both in the term of politics
(devolution) and administrative (deconcentration) in healthcare services seen from the planning and
implementation of healthcare programs. Political authority is owned by the Regional Healthcare
Office (Dinkes Daerah) and Community Healthcare Center (Puskesmas). Meanwhile, administrative
authority is owned by the governor as the representative of the central government in the region. In the
healthcare sector, the governor gave this authority to the Dinkes of Sumatra Utara Province (Dinkes
Provinsi). At the central level, the healthcare sector is the responsibility of the Ministry of Health.
Research on decentralization has been carried out in recent years. Hartanti's research [2] for
example focuses on administrative authority in the financial management of the education sector. The
result of her research is the reduction in the amount of administrative authority did not reduce the
allocation of funds that were de-concentrated to the regions. Deconcentration funds have also not been
appropriately allocated. Alfiyanti's research [3] is also related to administrative decentralization which
examines the accountability of the expenditures of deconcentration budgets. The realization of the
deconcentration budget has reached 91 percent, but it is not followed by evidence of accountability.
Deconcentration activities furthermore can be concluded that do not transparent yet. Meanwhile,
Kobandaha [4] analysed the use of administrative authority possessed by the governor with regard to
overseeing the preparation of regional regulations on regional budget. The result of his research is the
need for a strict arrangement of the principles of deconcentration. This is important so there is no
misuse of the governor’s authority against the regent/mayor in the formulation of regional regulations.
Although some of these studies analyse administrative decentralization, all three differ in scope with
the research being carried out. In addition, the three studies did not discuss the political authority
which was also the objek of this study.
Research on political decentralization in healthcare services has been for intance carried out by the
SMERU [5]). The study found that the biggest challenge of implementing political decentralization
was the unavailability of supporting regulations and directions. The GDS II study [6] also concerns on
political authority in health services, but is related to the availability of health facilities and public
access to these healthcare facilities. In addition, the GDS II study examines political decentralization
in implementing good governance. The implementation of good governance has not shown significant
improvement in the era of regional autonomy in twenty provinces in Indonesia. Whereas, the study of
Langran [7] saw political decentralization from democratic practices that finding a lack and unfairness
of the health budget and community participation that reflected the weakness of democracy.
Meanwhile, Sun's research [8] analysed the relationship between political decentralization and health
system performance. The result was giving greater decentralization authority to regions can improve
the quality of health system performance. In addition, abundant state resources have a major impact on
the effectiveness of decentralization.
In contrast to this study, GDS II research, Langran and Sun discussed the magnitude of political
authority. This study examines political authority in planning and implementing health programs.
Actually Sun also uses health programs to see the implementation of decentralization, but his research
uses quantitative research methods. Meanwhile, this study uses qualitative methods and health
programs as case studies.
The Zarmaili study [9] also used case studies, but the cases used were related to administrative
services in the healthcare and education sector. The results of his research, decentralization has not
been able to run effectively because community participation is still very low in the level of planning
and supervision of the development of healthcare and education services. Meanwhile, Rajesh and
Thomas [10] and Exworthy, Frosini and Jones [11] used an institution as a research case. Rajesh and
Thomas use the institution of Local Self Governments as a research case that can facilitate the
provision of health services to the community. Whereas Exworthy, Frosini and Jones used Foundation
Trusts institutions and found a model consisting of three elements, namely the right to make decisions,
residual ownership status and market exposure. These elements must be owned by the Public Hospital.
The merging of these three elements produces incentives that encourage the development of
entrepreneurial behaviour.
Apreku's research [12] looked at the administrative, political and fiscal authorities carried out in the
healthcare and education sector. The results of his research, the education sector has a scope of
regional autonomy that is greater than the healthcare sector in terms of finance, service organizations,
human resources and governance. In addition, his research findings are insufficient evidence regarding
the impact of decentralization on the performance of the healthcare and education sector, especially
seen from the output indicators and outcomes. Furthermore, Kiriaghe's research [13] discussed
administrative and political authority together from a political perspective. Local governments have
autonomy, but there is little autonomy in utilizing financial resources because financial problems are
still controlled by the central government. Therefore, participation in policy planning is still very
limited. The level of decentralization is not in the sense of devolution.
The approach used in this research is multi-level stages that use vertical relations, namely between
different levels of government from the point of view of public administration (institutions).
Therefore, the role of each government institution or organization in using its authority can be
analysed. In addition, this study also looked at horizontal relations at the sub-district level where the
Puskesmas were located. Sciortino's research [14] also uses a multi-level stage perspective but from
Anthropology.
The main theories applied in this study are Smith's decentralization theory [15], the
decentralization theory of Cheema and Rondinelli [16] and the theory of decentralization of Rondinelli
et al. [17]. These theories are chosen based on several main reasons. Smith's decentralization theory
examines decentralization more than a country's territorial hierarchy. This is in accordance with the
system of government in Indonesia which consists of central, provincial, district /municipal city and
sub-district. In addition, Smith's decentralization theory divides decentralization based on two forms:
devolution (political decentralization) and deconcentration (administrative decentralization). Both
forms of decentralization are common practices of decentralization and are the same understanding for
the majority of government employees in Indonesia. Meanwhile, the theory of decentralization of
Cheema and Rondinelli and the theory of decentralization of Rondinelli et al. regarding
decentralization were taken from various cases in developing countries or ex-colonial foreign
countries. Indonesia is one of the countries in that category. In addition, the decentralization theory of
Cheema and Rondinelli and Rondinelli et al. uses an economic perspective as the basis of their
theories so that it can complement Smith's decentralization theory which looks more at a political
perspective.
Smith's decentralization theory, Cheema and Rondinelli and Rondinelli et al. do not see
decentralization of politics and administration as two stand-alone concepts but there is a situation that
fills one another, supports and complements in providing public services. This study also wants to
analyze the implementation of political and administrative decentralization together by using health
programs as a case study.
Starting from the gap of past studies, methodology and main theories of decentralization, this
research is expected to be able to find new findings that are more specific, comprehensive and detailed
from the perspective of Public Administration. In addition, the results of this study can contribute,
especially with regard to organizational and management aspects which are part of the development of
a friendly city.
2. Method
The scopes of this study are the healthcare sector. The healthcare sector is one of the basic needs of the
community which is a mandatory regional affair. The main problem of this research is how the concept
of decentralization both politically and administratively is carried out in health services in the regions.
This investigation uses qualitative methods with adopting case study [18] and multi-level stages
approach [19]. Four districts and cities, namely Deli Serdang district, Serdang Bedagai district, Medan
municipal city and Binjai municipal city in the province of Sumatra Utara have been selected as
research locations using purposive sampling. Furthermore, each district and city is represented by two
Puskesmas which are selected using purposive sampling.
The primary data collection techniques in this study were conducted through in-depth interviews,
interviews, phone interviews, questionnaire and observation. Whereas secondary data collection
needed to support primary data is carried out through both published and unpublished documentation
techniques. The informants in this study are those who work with the provincial and district/municipal
city offices of the healthcare sector, communities, practitioners and other relevant stakeholders that are
determined using purposive and snow ball sampling techniques. This study then uses the triangulation
method to see the validity of the data [20].
Compared to 2014, the amount of budget allocation in the healthcare sector in 2015 was almost the
same or there was no significant increase. One reason is the amount of budget allocation for salaries.
A total of 131 local governments in Indonesia spend half of the APBD on employee salaries
(excluding soldiers) [21].
Even this budget that is not too large in the end does not fully reach the community in the context
of building health services. According to Wildmalm [22] in developing countries the biggest
challenges in health and education development come from corrupt practices committed by officials,
politicians, teachers or health workers.
One reason that at least 10 percent of the total APBD has not been fulfilled for the healthcare sector
is due to the small amount of district/municipal city Regional Original Income (PAD). Of the four
districts/municipal cities that are the location of this study. Medan has the largest PAD in Sumatra
Utara (Table 2). The amount of PAD makes Medan one of the areas where Puskesmas employees
receive welfare benefits every month. In addition, in the decentralization era there was a significant
influence between the number of PAD and the number of programs implemented in the Puskesmas
and district/city healthcare offices.
The majority of autonomous regions in Indonesia, including Sumatra Utara, are still dependent on
the regional budget (APBD) in financing healthcare programs. The APBD consists of revenues from
PAD, Revenue Sharing Funds (DBH), General Allocation Funds (DAU) and Special Allocation Funds
(DAK). Preferably, the financing of healthcare services and also the financing of development
programs that become regional liabilities come from PAD. However, the vast majority of regions in
Indonesia, including in Sumatra Utara still depend on DBH, DAU and DAK in financing healthcare
programs. This is due to the fact that the PAD in each autonomous region has not had a significant
amount. Meanwhile, the potential tax objects in the region such as Income Tax, Value Added Tax,
Export/Import Tax and so on are still the object of central government tax. Such a distribution system
has failed to achieve the goal of equity between rich and poor regions [23].
From the explanation above, the relationship between political authority and administrative
authority is very close and important, especially in countries that have autonomous regions that are not
yet fully independent due to the limited financial and human resource capacity in the region.
Administrative decentralization possessed by the governor as a representative of the central
government in the regions can be used to cover up the limitations that local governments have as
autonomous regions. In addition, the administrative authority can be used by the Governor to reduce
the gap between autonomous regions in a province which is his responsibility so that each autonomous
region can prosper its people as the main goal of implementing political decentralization.
However, administrative affairs carried out through deconcentration activities in the healthcare
sector in an orderly manner must be submitted to the autonomous region to be carried out
independently (Rondinelli et al.). Therefore, it needs a new formula for the gradual reduction of the
authority of the central government in the regions as an autonomous region. This is inseparable from
Ostwald, Tajima, & Samphantharak's opinion [24] that decentralization in Indonesia is a transitional
process to accommodate the demands of reform in 1998. So the implementation of decentralization is
not an effort to create an efficient government, but rather the method chosen to overcome critical with
fast that happened at that time. In addition to the new formula for the authority of the central
government in the regions, reform of the financial balance system between the central government and
local governments is also needed. Through this reform, the regional government finances are getting
bigger so they are better prepared to implement devolution policies.
4. Conclusions
The implementation of decentralization, both political decentralization (devolution) and administrative
decentralization (deconcentration), in the healthcare sector in Sumatra Utara cannot be said to have
been running optimally. There are three main factors which are the causes, which are related to health
programs, human resources and finance.
The relationship between political decentralization and administrative decentralization in the
healthcare sector in Sumatra Utara province is very important. Programs and financing for the
decentralization of health sector administration can help the implementation of political
decentralization programs in the health sector. The relationship between the two decentralizations type
is also explained to be always directly proportional in the sense of the word that the greater the
financing of administrative decentralization programs, the better the implementation of political
decentralization in the health sector. However, in the perspective of regional independence, the greater
the funding and administrative decentralization programs carried out by the central government, the
smaller the independence of the regions.
Recommendations of the study are placed at least on three fields which are (1) the necessary to
make the devoluted and the deconcentrated programs synergized on the ground, (2) the empowerment
and improvement of local capabilities to implement the healthcare sector as well as (3) the urgency to
reform and improve local fiscal system.
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